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By James P. Ulery, Frank E. Chase

Clay veins found in coal mines have caused numerous injuries and fatalities. These structures plague all phases of mining, including entry development, pillar recovery, and panel extraction. Clay veins also increase production costs and may disrupt or halt mining. These detrimental aspects have prompted the Bureau of Mines to investigate the physical characteristics of and roof instability problems associated with clay veins. This was accomplished by observing and mapping clay veins in surface and underground mines. The occurrence and origins of clay veins were also investigated to determine predictive capabilities. The investigators found that clay veins normally occur in more stable, less rapidly subsiding coal basins. Clay veins result when tensile stresses develop fissures which are later infilled. These fissures can be propagated by compactional processes and/or tectonic stresses active during and subsequent to coalification. The Bureau also found that associated faults, fractures, and slicken-side planes commonly parallel clay veins and disrupt the lateral continuity of the immediate and, sometimes, main roof. When clay veins parallel or subparallel the direction of face advance, the roof is segmented into cantilever beams, causing unstable conditions. Consequently, the strata on either side of the clay veins should be bolted and strapped together to form a beam.

Jan 1, 1987

By Arturo Ressi di Cervia

From the times when men in lacustrine environments drove wooden piles into the mud to elevate their dwellings, until the beginning of the twentieth century builders reacted to the conditions found in the location of their proposed structures by attempting to distribute their loads in ways that could be supported by the foundation's soils; or, if those were unsuitable, by moving the structure, whenever possible. While many major structures were built on stable ground (the pyramids were founded on rock), others were built on [ ]

Jan 1, 2000

By Ellsworth R. Spencer

An assessment of U.S. western hardrock miners? noise exposures was conducted as part of a multi-year National Institute for Occupational Safety and Health (NIOSH) survey of noise exposures in each sector of the mining industry. Noise from selected mining equipment and operator noise exposures were measured, analyzed and tabulated for dissemination to the participating sites and are being used to direct NIOSH research and interventions to address the greatest noise hazards. Eighty-two noise dosimeter measurements were obtained, along with time-motion studies as the miners operated hardrock mining machines. Of the operators, 96% had daily noise doses that exceeded the U.S. Mine Safety and Health Administration?s (MSHA) permissible exposure level. The average gold miner dosages while operating the following equipment were: haul trucks - 261%, load-haul-dumps (LHDs) - 235%, single boom drills - 221%, bolters - 214% and dual boom drills - 163%. The worst exposure level was a silver miner with a daily dose of 873%. Time-motion data showed that this miner?s exposure accumulated most rapidly while operating a jackleg drill. These results will be used to help prioritize noise control development by NIOSH and other partners.

Jan 3, 2010

By William C. Larson

The Bureau of Mines, as a result of its contract research program, is developing a retractable core bit for the wireline drilling system (Retractable Sit System, No, H0272004). The prime contractor, Longyear Company, Minneapolis, Minnesota, and the subcontractor, Doerfer Division, Cedar Falls, Iowa, have designed, fabricated, and are currently field testing the in-hole retractable bit system. he objective of the program is to develop a minerals exploration core drilling system that allows retraction of a worn out bit and insertion of a new core bit, without pulling the drill rods out of the hole. To date, the results of the project are encouraging, and the retractable bit contract is currently in the last phase of a four-phase program, which is on schedule and under budget.

Jan 1, 1980

By Edward L. McHugh

The study area, which comprises 28,443 acres within the Jacumba Wilderness Study Area, is in the California Desert Conservation Area, and along the U.S.-Mexico border 25 miles west of Fl Centro, CA. The U.S. Bureau of Mines evaluation of mineral resources is based on examination of mining claims, known mineral occurrences, and mineralized zones during the fall of 1983. Limestone resources were identified inside the study area; tungsten resources may he present. Metasedimentary rocks intruded by Cretaceous Quartz diorite predominate in the study area. Tungsten and some gold have been found in skarn zones along intrusive contacts; limestone deposits are in the pre-Cretaceous rocks. Tertiary and Quaternary volcanic flows, pyroclastic rocks, clay beds, and diatomite in lake deposits nave been investigated for possible non-metallic resources. Evidence of mining or prospecting was found at 26 sites in or just outside the study area. In 1983, 106 claims were held in 13 claim groups. One claimant was sporadically prospecting for gold on claims in the north part of the study area in 1983, and gravel was being mined from alluvium 1/4 mile to the east.

Jan 1, 1985

By Oliver Bowles

The manufacture of lime is one of the oldest industries. Plants are distributed widely and furnish an essential raw material for numerous industries. The use of lime by the building trades, in agriculture, and in hundreds of manufacturing and chemical processes has created demands for a large production and has necessitated exhaustive research on methods of manufacture and uses. The bibliography of lime is an extensive one, but for the most part each publication has dealt with only certain operations. The purpose of this paper is to present a general picture of the industry as a whole. The abundant literature has been abstracted and quoted freely, and the National Lime Association has rendered valuable assistance in furnishing data for certain sections. Publications containing more detailed information on the various branches of the industry are referred to in the footnotes and in the bibliography.

Jan 1, 1936

By D. Nutakor

The ability of computers to create synthetic representations of the real world in virtual reality offers a number of opportunities to enhance training methods used in the mining industry. Unfortunately, the training effectiveness of virtual reality systems currently used in the mining industry has received only limited testing. Miner Simulation (MinerSIM), an augmented reality system with integrated hypermedia suitable for training underground miners in the basics of using a jackleg drill to install rock bolts in a virtual mine environment is in its evaluation process at the University of Missouri-Rolla Experimental Mine. This paper discusses evaluation methodologies of the MinerSIM system, which consists of experimental and control groups with control students learning via traditional lecture and text formats. Preliminary results from usability tests of the first part of MinerSim, which is an online tutorial on underground rock bolting, are presented.

Jan 1, 2008

By K. B. Chaudhurl

The thermodynamics of the reactions taking place are examined with the aid of equilibrium diagrams for the Pb-O-S system. Based on investigations of chemical, mineralogical and differential-thermo analyses of intermediate products of different desulphuration degrees, an attempt is made to explain the mechanisms of the reactions in the smelting shaft of the KIVCET furnace. The differences between this and other direct lead smelting processes are demonstrated by these thermodynamic and kinetic considerations. Proceeding from these results, the practicability of direct lead smelting processes is discussed with reference to the composition of the primary feed materials to be processed. This comparison also considers the behaviour of minor metals, the products obtained and their characteristics in respect to further treatment. For assessing the operating costs, the over-all energy consumption is considered taking into account various price relations between electric energy and fuels/reductants. Based on the peculiarities of the various processes, an attempt is made to compare the necessary means of meeting the pollution control requirements. The paper concludes with reference to the criteria and problems involved in comparable evaluations.

Jan 1, 1978

By Luis Valle, Fredy Zegarra, Ernesto Vizcardo

El uso de los procesos estocásticos y cadenas de Markov se ha desarrollado solo para estudios de probabilidades en la rama de las ciencias matemáticas y como una opción a las descripciones tradicionales en el campo del procesamiento de minerales, se realizó una comparación entre ambas metodologías para lo cual se cuenta previamente con varios análisis granulométrico proveniente de los molinos de Bolas industriales de la empresa Shougang Perú y pruebas granulometrías de Molienda de Sider-Perú, comparar en ambos estudios, como el probabilístico (Cadenas de Markov) y el cinético (Selección y fractura) ofrecen un buen acercamiento al resultado experimental, dando como una buena alternativa el primero por su uso del manejo estocástico.

Sep 1, 2017

By P. E. Cavanagh

"The Davis tube test has been used for many years as a laboratory method for determining the magnetic iron re-coverable from a magnetite iron orebody. This paper de-scribes a method for determining the recoverable iron from ores of the Labrador Trough type, with the usua1 flow sheet utilizing spirals followed by magnetic separation.The mechanical structure of a metamorphosed iron ore, resulting from recrystallization over long periods of time, is the basis for the laboratory method developed. Similarities between the structures of such recrystallized ores and the structure of annealed and recrystallized steel are noted.A laboratory technique to determine the size of the different grains of gangue and iron ore minerals is de-scribed and the application of this information to arrive at recommended grinding techniques and flow sheets is demonstrated. The use of the method to determine recoverable iron in such ores is compared to actual iron recovery in the pilot-plant and commercial concentrations of the same ore.The use of a specified lower limit of recoverable iron as determined by this method, in order to design open-pit limits, achieves practical results when compared to designing a pit based on an arbitrary lower limit of total soluble iron. The Ungava Iron Ore deposits are used in giving an example of the resulting pit design changes."

Jan 1, 1968

By Peter Bourke, Marc van Olst, Seppo Ronkainen, Natalie Brown

"Since the early days of flotation, process technicians have known that the speed at which the froth is recovered over the lip of the cell has a very direct and consistent influence on the grade and recovery of the circuit. No plant would deny that, even to this day, one of the most important aspects of a process technician’s job is ensuring that the froth is moving at a desired and controlled speed over the lip. Unfortunately, process technicians cannot watch the froth throughout the entire shift, as there are always a lot of other tasks to do.A considerable amount of work has thus been done to develop a “system” that automatically measures the speed of the froth. This measurement would then be used in simple controllers to emulate the steps taken by the process technician in correcting deviations of the froth speed from its desired level. Many of the earlier attempts to measure speed were ineffective, as they were unable to cope with turbulence on the froth surface. The FrothMasterTM instrument makes use of machine vision technologies to measure the speed of the froth over the lip of a cell at a very high sampling rate. This instrument produces an extremely reliable and accurate measurement of the froth speed (as well as other parameters such as bubble size and froth stability). As we will show, the effectiveness of the speed measurement in controlling the performance of the plant is a testimony to its reliability.Three FrothMasterTM units have recently been installed on the Cadia Hills Gold Mine in New South Wales (Australia). The objectives of this installation were:To control the mass-recovery of two Tank Cells in series on the same level where differences in the hydrostatic head between the two cells result in the cells pulling inconsistently with respect to each other.Control of the concentrate grade (%Copper) from the first rougher.Reduction in the frother consumption in the rougher circuit by monitoring the froth speed.A simple controller was designed to react to disturbances in the same way that human operators react. This was done after consultation with the metallurgists and the process technicians at Cadia. The controller had two functions:Stabilisation: The stabilising controller made use of three manipulated variables (level, frother addition rate and aeration rate) to control the froth speed to a setpoint.Optimisation: The optimising controller adjusted the froth speed setpoint based on deviations of the grade (measured in real-time with an OSA) from a setpoint. The plant metallurgist adjusted the grade setpoint based on information about the ore."

Jan 1, 2001

By Rejean Gagnon, Fernand Rochefort

"Haulage costs, in most operations, represent a large portion of total cost. Quebec Cartier Mining Company came to the conclusion t hat an electric trolley assist providing more horsepower than available from dieselgenerator sets presented the best oppor tunity for improvement. Accordingly, a testing and development program was carried out which resulted in the design, installat ion and application of a practical system. This paper describes the development of the system, the equipment used as well as the actual operation. A projection is also made to indicate further improvement in productivity. A comparison is made of truck operating data before and after activation of the trolley assist system in order to determine its economic impact."

Jan 1, 1972

"Mining used to be a business primarily focused on the technical aspects of getting valuable ore out of the ground and extracting the minerals efficiently. Without denying the importance of these skills, a narrow focus on technical issues is no longer enough to guarantee success when it comes to exploiting rare earth element (REE) deposits. Molycorp failed to enter the global REE market in a successful manner, while none of the many REE exploration projects has turned into an active mine so far and none is expected to commence operations in the near future. Accordingly, the world of REE is far more complex compared to other commodities. This paper looks into the REE industry to identify the factors that can connect potential U.S. REE mines to the market. The ability to break free from past thinking and become future-focused is a key driver. Mining of REE is pointless without a corresponding value-adding chain, while developing a value chain without first establishing an uninterruptible source of REE is also senseless. The mining sector must be based on the REE value chain and vice versa, along with the establishment of a market channel for the REE products that come out of the mine. INTRODUCTION It has been seven years since rare earth elements became the subjects of front-page headlines. It was when the controversial Chinese export policy for these critical commodities was epitomised in a maritime border dispute with Japan in September 2010 that resulted in the big REE crisis and price spike of 2011 (Barakos et al, 2016c; Mancheri, 2015). The world was dismayed, especially in REE-importing countries, such as the United States that was and is still totally dependent on Chinese production and exports (Barakos et al, 2016c; Kennedy, 2015). The short-lived alarm initiated a treasure hunt by way of exploration for REE deposits all over the world. The continuously growing demand on the one hand and the Chinese sovereignty of the REE-market on the other, led the rest of the world to explore their own REE resources. In just a few years, more than 400 projects were initiated to explore REE deposits outside of China (ERECON, 2015; Goodenough, 2016). The prices of REE, however, dropped rapidly and at the moment of writing this paper are in 6-year lows, at the level of the price average before the 2011 crisis (Barakos, 2017). The viability of even major established producers is being challenged, not to mention the development prospects of potential REE-market entrants (Barakos et al, 2016b; Rollat et al, 2016). Production cutbacks and industry consolidation in China impel REE market experts to forecast that prices have already reached their lowest point and have nowhere to go but up (Adamas, 2015; Roskill 2015). Yet, expectations for increased REE prices are limited and drastic changes are unlikely to happen in the near future, as there is still excess supply in the overall REE market (Barakos, 2017). Nevertheless, the low prices of rare earths are not the only reason that potential producers are struggling to enter the global REE market. Among other parameters, the separation of the individual elements seems to be the most important factor, as it is technically challenging and expensive to build and to operate."

Jan 1, 2018

By M. Felsenthal

Engineers are frequently faced with the problem of having to predict oil recovery from a solution gas drive reservoir in the early life of a field. This is often the time when actual laboratory or field-derived gas-oil permeability (kg/k0) data are not yet available. Although excellent collections of k0/k0 data for various types of rocks may be found in the literature,1,2,3 a need exists for a more detailed correlation of k0/k0 data with core properties such as porosity, permeability, clay content or pore-size distribution. It is the purpose of this article to present this type of correlation for sandstone material. The correlation is based on laboratory tests performed on over 300 core samples from 19 reservoirs in the United States and Canada. EXPERIMENTAL Cores were analyzed by routine procedures, using samples of conventional size (7/8-in. diameter, 7/8-in long) cut parallel to the bedding planes. Air permeability was measured at 1.67 atm mean pressure in a Hassler-type apparatus. Porosity was determined with the aid of a Ruska bulk volume meter and a Boyle's Law rock volume meter, An evaporation method' was used to evaluate irreducible water saturations. Core samples were saturated with 25,000 ppm NaCl brine. The brine was reduced to the irreducible saturation, and the remainder of the pore space was filled with kerosene. This was followed by multiphase flow tests using the so-called "dispersed feed" technique.5 n this technique, gas and oil (kerosene and kerosene-saturated air) were dispersed with the aid of a porous Alun-durn feed head, the face of which contained a waffle-shaped system of Lucite-lined grooves. Oil entered the back side of the feed head and emerged at the raised areas of the front face. Gas was introduced directly into the system of grooves at the front face. The gas-oil mixture then entered the test core which was kept in capillary contact with the feed head. Permeabilities were determined from rate and pressure measurements and saturations from weights. All determinations were performed at equilibrium or steady-state conditions. Pore-size distributions were determined on selected samples by a mercury injection technique.6 GENERAL CORRELATIVE TRENDS When examining data from a given reservoir, it was noted that k0/k0 vs saturation curves became generally less steep as specific air permeability increased, a development that has a favorable effect on oil displacement efficiency by solution gas drive. This trend has also been reported by others in the literature.' An effect of porosity on k0/k0 data was also noted. This effect was not generally discernible in a study of relative permeability data for a given reservoir but became apparent when data for sandstone reservoirs of similar lithology but differing average porosity were compared. For instance, in a comparison of argillaceous and/or calcareous sandstones from 11 reservoirs ranging in average porosities from 14 to 28 per cent, a definite trend was noted, indicating that for a given permeability k0/k0 curves became less favorable (i.e., steeper) as porosity increased. A similar trend was observed for a group of comparatively clean sandstones from five reservoirs ranging in average porosities from 15 to 21 per cent. For a given permeability and porosity, comparatively clean sandstones gave more favorable k0/k0 curves than argillaceous and/or calcareous sandstone or chert reservoirs. The laboratory studies also showed that least favorable k0/k0 curves were exhibited by shaly sandstone, conglomerate, and sandstone containing carbon inclusions. Table 1 lists the various source reservoirs classified by lithology types. To facilitate a correlation of k0/k0 data with core characteristcis, it was found expedient to work with

By Robert D. Brown

The purpose of this paper is to tell a story - and it is a story with a moral. My topic is Present Trends in the Tax Environment Affecting Mineral Development in Canada, and the first thing to recognize is that, with depressed metal prices and weakening western economies, taxes, in and of themselves, are not really the cause of the Canadian mining industry's present doldrums. But the character and level of mining taxes in Canada has had a profound influence on the development of the industry over the past decade, and the expectations of what taxes the industry will face in future years will influence the industry's further growth. My theme today is that, in Canada, our tax system has, in the past, served as a negative and destabilizing influence in the mining industry: it has contributed to a major short-fall in investment commitments and hence in the contribution which the mining industry can make to the Canadian economy, and the adverse effect on the industry of previous high tax rates was made far worse by the confusing, contradictory and perverse nature of the tax system itself. This is a story with some happy parts in it, and, in fact, governments in Canada did learn, haltingly and grudgingly, that there are limits on the amounts that governments could safely extract from the industry, and that some assurances of long term fiscal stability were necessary if investors were to be induced to make massive commitments which could only be recovered over very lengthy periods.

Jan 1, 1982

By Edward J. Felten

THE oxidation resistance of chromium and Fe-Cr alloys is increased by small additions of yttrium or other rare earth metals.1,2 In addition, the presence of the additives increases the resistance of these alloys to spalling of the external oxide above 1000°C. This ability to prevent spalling appears to be related to the formation of an internal oxide in alloys containing yttrium or the other rare earth metals. The internal oxide is found in the form of a filamentary growth concentrated in the grain boundaries of the unoxidized metal. In alloys containing yttrium this internal oxide was found to be either Y2O3 Or YCrO3.' In an earlier report,' the growth of the external oxide was found to be controlled by diffusion through the oxide layer. Thermal balance studies were used to establish the kinetics of external oxide formation. In this related study the rate of growth of the internal filamentary oxide has also been studied. The results obtained indicate that the growth of the internal oxide is also diffusion controlled. Internal oxidation appears to occur in at least two ways. Using copper alloys containing small amounts of silicon, Rhines 3 found that between 600" and 1000oC a subscale was formed which consisted of particles of silica dispersed in the metallic matrix. The conditions requisite to internal oxidation as suggested by Rhines are: 1) a solubility of oxygen in the alloy, 2) the ability of oxygen to diffuse at an appreciable rate into the alloy, 3) the possibility of the formation by the alloying element of an oxide more stable than the oxide of the host metal, and 4) a relatively low solubility of this oxide in the metal. These conditions are fulfilled for a number of other copper alloys.3-5 Furthermore, the relationship between the depth to which the internal oxide is formed and the oxidation time follows the simple parabolic law.6 The activation energy for copper containing small amounts of silicon, germanium, iron, or manganese as calculated from Rhines data6 is about 48 kcal per mole. In some cases the internal oxide is found segregated at the grain boundaries, especially near the the surface. Observations of this type of oxide formation have been reported by stead,7 Rhines,* and Lustman. Evans" cites these cases as examples of the simultaneous movement of anions and cations during oxidation. Furthermore, Evans states that the presence of a minor constituent with a high

Jan 1, 1962

By Daniel Harrington

On the night of June 8, 1917, the flame of a carbide lamp accidentally set fire to the uncovered and frayed insulation of an armored power cable near the 2,400-foot level of the North Butte Mining CO.'s Granite Mountain shaft. How this, insulation accidentally became exposed is explained on page 15. The highly flammable oiled fabric set fire to the shaft timbers, and as this is a downcast shaft the fire spread with great rapidity, soon filling the mine workings with smoke and gas. At the time 410 men were working underground, 247 of whom escaped by various means, but most of the 163 remaining were probably overcome soon after the fire started, and perished. Only two men were actually burned. The cause of the disaster was purely accidental. The immediate effect was the unexpected reversal of normal conditions; the ultimate effect was great loss of life and the destruction of the main hoisting shaft, putting it temporarily out of service. The work of rescue and fire fighting continued eight days. The following pages present an attempt to draw some practical conclusions and suggestions from this disaster. The property of the North Butte Mining Co. consists of about 220 acres in the northeastern part of the Butte district, Montana. Next to the Anaconda Copper Mining Co. it is the largest producer of the district. In 1916, the year before the disaster, there were 1,160 men employed. The output was 560,947 tons of ore, which yielded 24,498,181 pounds of copper, 1,047,063 ounces of silver, 1,712 ounces of gold, and 412,953 pounds of zinc. The profit was $2,479,595. The total development work for that year was 21,694 feet. During the first half of 1917, the year of the accident, the daily tonnage of ore averaged 2,000, an increase of 400 tons over that of the year 1916.

Jan 1, 1922

To improve the ventilation of large-opening under-ground stone mines by using stoppings made from stone left in place. Background Underground stone mines typically use large room-and-pillar openings with little ventilation control. Stone miners may be exposed to contaminants that include silica dust, diesel particulate matter (DPM), exhaust gases, nuisance dust, and face shot (blasting) fume gases. The health risks from breathing these fine particles and toxic organic materials are well documented. Although contaminants such as dust or diesel exhaust can be some-what controlled at the source, the escaping contaminants are often diluted and removed from work areas using ventilation with minimal controls. In many cases, current mine ventilation practices use trial-and-error techniques to improve ventilation. The growing realization of the importance of a healthy work environment along with increased regulations will require many stone mines to implement new ways to improve ventilation. In-place stone stoppings are one option. Mine air flows from one point to another because of a pressure differential between those points. This pressure differential is established using a mechanical fan in conjunction with separations (stoppings) between high-pressure (intake) and low-pressure (return) airways. The separation of intakes and returns is an important concept that is used in most other types of mines. Normally, air moves through underground stone mines with minimal control technology. Fans are placed in locations where they are thought to be most beneficial, and intakes are not separated from returns. In a few smaller underground stone mines, proper ventilation can be achieved with a few strategically placed fans. However, as these mines increase in size, moving adequate quantities of air through-out the mine becomes harder, and separation of intakes and returns becomes a problem. Building traditional mine stoppings to separate the intake and return airways in entries with a cross-section area often exceeding 800 ft2 is difficult. The stoppings must be able to withstand both the dynamic pressure from face shots and the static pressures created by the fans. Construction and maintenance difficulties, as well as high costs, are the main factors preventing these traditional mine stoppings from gaining wide acceptance by the stone mining industry.

Dec 1, 2002

By Thomas J. Peters

Tungsten, silver, lead, zinc, and placer gold occur in the Cucamonga B RARE II area (no. B5174). A strata-bound, scheelite-bearing zone at the Blue Diamond prospect (fig. 1, no. 1) contains an estimated 16,000 tons (15,000 t) of identified, subeconomic resources averaging 0.16 percent tungsten trioxide (W03). There is a high potential for discovering additional tungsten resources at this property. The California-Hercules prospect (fig. 1, no. 5) ha; a mineral occurrence which contains an estimated 1,000 tons (900 t) of tactite averaging 1.3 oz silver per ton (45 g/t), 0.75 percent lead, and 0.72 percent zinc. Another occurrence, at the Blew Jordam Prospect (fig. 1, no. 4) has an estimated 100 tons (90 t) of tactite averaging 10 oz silver per ton (340 ,/t), 3.75 percent zinc, and 2.3 percent lead. There is a moderate potential for discovering silver, lead, and zinc resources at these prospects, which are in metamorphic pendants. There are a few lode gold prospects in the area (fig. 1, nos. 3, 11, 14) are on geologic structures which parallel the San Andreas Fault, northeast of the area. These deposits are not well exposed and have been historically unproductive. Placer gold in area B occurs locally in the beds of intermittent tributaries to Lytle Creek (fig. 1, nos. 10, 12, 13) in concentrations as high as $1.17 per cu yd ($1.53/cu m, at a gold price of $450 per troy oz). The deposits have no significant volume, but could be utilized for recreational panning and suction dredging. In the Cucamonga C RARE II area (No. C5174) placer gold occurrences locally contain as much as $1.23 per cu yd ($1.61/cu m). However, gravel containing the gold appears to be limited to stream beds, and does not occur in sufficient quantity to constitute resources. Recreational panning and dredging also may occur in this area.

Jan 1, 1983

By Walter R. Curtner

Many, if not most, of today's pollution liability claims are related to events ("occurrences") that happened in the past. This fact creates an opportunity to obtain a large amount of insurance coverage at essentially no cost. Furthermore, in many cases, this insurance coverage is readily available. Scenario #1 For some 15 years, an underground gas tank has had a slow leak. The leak has now been discovered because the gas has contaminated nearby wells. As a result, an expensive $1 million cleanup is required. In addition, a liability suit has been filed for damages due to the contamination of nearby wells. Consequently, legal expenses are being incurred. Are all of these actual and potential costs insured? Obviously, if you have a pollution liability policy in place, the above costs will probably be insured. I say probably because business liability policies are not uniform. But, what if you don't have a pollution liability policy and what if your current general liability policy excludes all pollution liability (as most of them do today)? Under these circumstances, it first appears there is no insurance for this $1 million cleanup and liability suit. But this is probably not the case. You may well have insurance coverage, and you may well have much more insurance coverage than you ever expected. And, the insurance that I'm referring to is already in place. You simply need to find it and learn how to use this insurance - I'm referring to your old policies. In many cases, old liability insurance policies provide coverage for claims made today, because these policies were written on an "occurrence" basis of coverage. In fact, most still are written this way. This means that the insurance policy covers bodily injury or property damage liabilities (as defined in the policy) arising out of' "occurrences" or accidents that happen during the policy period regardless of' when the claim for damages is made. Therefore, for insurance purposes, the key question is: when did the "occurrence" take place? If someone falls and breaks a leg, that is clearly an "occurrence." The broken leg occurrence is, therefore, insured by the liability policy that was in existence at the time of the fall - regardless of when the claim or suit is filed, if ever. However, the answer to this question is seldom an easy one when you are looking at a pollution claim. In our scenario, the tank had a slow leak over 15 years, but property damage was not discovered until now. The question of when the "occurrence" (as defined in the insurance policy) took place has been litigated and continues to be litigated in many courts across the country. But, most often the answer has been that, for insurance purposes, the "occurrence" is the entire period that the tank was leaking (15 years), even though the contamination to the water was not discovered until 1987. This means that the person or company that is insured can potentially use all of its general liability policies (if they are "occurrence" policies, and most were), which were purchased during the 15 years from 1972 until 1987. And, these policies will potentially insure all of the claims and related exposures that arise out of this leaky underground gas tank. Scenario #2 In our first scenario, the claims and expenses were insured by past general liability policies because the claims arose out of events in the past, which, in turn, caused damage. Let's look at another example. In this scenario, Company XYZ has received a request to help clean up a landfill site because 10 years ago, XYZ dumped some toxic substances at the site, which was totally legal at the time. XYZ has not dumped anything at the site since this time. Nevertheless, XYZ is now being required to contribute $2 million to the cleanup of this site. In this scenario, if you had purchased "occurrence" general liability policies 10 years ago, these 1977 policies would (potentially) apply to the current $2 million cleanup claim. And, the reason is that the "occurrence" leading to the 1987 claim took place in 1977.

Jan 10, 1987